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Judgment
O R D E R
PER VIMAL KUMAR, JM:
The appeal filed by the appellant/ assessee is against order dated 13.10.2025 of the Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi [hereinafter referred to as “the CIT(A)”] under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) arising out of assessment order dated 16.09.2022 of the Ld. Assessing Officer/ Assessment Unit (hereinafter referred to as “the AO”) u/s 143(3) r.w.s. 144B of the Act of A.Y. 2020-21.
Brief facts of the case are that the assessee filed belated Original Return of Income u/s 139(4) of the Act on 16.02.2021 declaring total income at Rs. 51,89,63,580/-. The assessee filed revised return of income on 16.02.2021 declaring income of Rs. 51,89,63,580/-. The return was processed u/s 143(1) of the Act at total income of Rs. 52,13,94,340/-. The case was selected for complete scrutiny under the following issues:
Substantial investment by an unlisted company in non-business assets
Refund Claim
Unsecured Loans
Capital Gains/Income on Sale of property
Deduction from total Income under Chapter VI-A
Notice u/s 143(2) of the Act dated 29.06.2021, notices u/s 142(1) of the act dated 26.11.2021, 23.02.2022 and show cause notice dated 22.03.2022 were issued. The assessee submitted replies. On completion of proceedings, Ld. AO vide order dated 16.09.2022 made addition of Rs. 29,50,000/- on account of disallowance of deduction u/s 80G of the Act.
Against order dated 16.09.2022, the appellant/assessee preferred appeal before Ld. CIT(A) which was dismissed vide order dated 13.10.2025.
Being aggrieved, the appellant/assessee preferred present appeal on following grounds:
1.On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in upholding the action of the AO in not allowing the deduction claimed u/s 80G of the Income Tax Act, 1961 by holding that the CSR donation made are not eligible for deduction u/s. 80-G of the Income-tax Act, 1961.
2.The Ld. CIT(A) ought to have considered that the appellant Company has made the CSR expense to eligible entities registered under section 80G of the Act and thus is eligible to claim such deduction.”
Ld. Authorized Representative for appellant/assessee submitted that Ld. CIT(A) erred in upholding action of Ld. AO in not allowing the deduction claimed u/s 80G of the Act by holding that the CSR donation made are not eligible for deduction u/s 80G of the Act. Relevant extract of the audited financial statements for the year ended 31st March, 2020 on page Nos. 4 -6, relevant extract of reply on Page Nos. 13-27 were submitted. Reliance was placed on order dated 13.10.2023 in ITA No. 1248/Del/2022 titled as “Teradata India Private Limited vs. DCIT.
Ld. Departmental Representative relied on impugned order.
From examination of record in light of aforesaid rival contention, it is crystal clear that Ld. CIT(A) vide order dated 13.10.2025 upheld assessment order dated 16.09.2022 of Ld. AO disallowing deduction of Rs. 29,50,000/- u/s 80G of the Act.
The appellant/assessee has submitted detail of aforesaid Corporate Social Responsibility (‘CSR’) donations and other than CSR donations are as under:
A co-ordinate Bench in ITA No. 1248/Del/2022 titled as Teradata India Private Limited vs. DCIT in order dated 13.10.2023, para 16 is observed as under:
“16.It is not in dispute that contributions made by the assessee are made to eligible institutions which are enjoying exemption u/s 80G of the Act. The fact that those contributions were made only to eligible institutions are not in dispute before us. We find that all the institutions listed in the tabulation are enjoying exemption u/s 80G of the Act and accordingly, assessee would be entitled for deduction u/s 80G of the Act thereon, irrespective of the fact that it is made as part of CSR obligations. The assessee in the instant case had duly complied the provisions of Companies Act, 2013 read with CSR rules thereon and as per the provisions of the Income Tax Act had also voluntarily disallowed the CSR expenditure while computing the taxable income. Since, the donee institutions are eligible institutions enjoying exemption u/s 80G of the Act, the assessee has claimed deduction u/s 80G of the Act which is also provided in the statute itself to the assessee. Hence, denial of deduction u/s 80G of the Act to the assessee would result in gross injustice. We ITA Nos. 1248 & 2337/Del/2022 (A) ITA Nos. 1430/Del/2022 (R) Teradata India Pvt. Ltd Page | 12 direct the ld AO to grant deduction u/s 80G of the Act to the assessee. Accordingly, the ground No. 6 to 6.6 raised by the assessee are allowed.”
In view of above material facts by following the judicial precedents, it is held that the action of Ld. CIT(A) in upholding action of ld. AO in not allowing the deduction claimed u/s 80G of the Act by holding that the CSR donation made are not eligible for deduction u/s 80-G of the Act, being illegal is set aside. The grounds of appeal are accepted.
In the result, the appeal filed by the assessee is allowed.